EEE2083 Midterm G1
Value of most valued option forgone
Definition of Opportunity Cost
Property and inequality of wants.
Exchange implies what?
Creative Destructive
Joseph Schumpeter is best known for coining which term?
Revenue-Cost
Price equals?
How much a good is Facilitates universal medium of exchange Based on the market All of the above
Price is...
It saves time, develops expertise, and automation/machines
The Division of Labor is more efficient and effective because...
Ripples through the economy Includes the "Unseen" Includes Opportunity Cost All of the above
The Multiplier Effect ...
False
True or False?: Consumers are more loyal when there is high optionality.
True
True or False?: Prices of products are subjective.
Price based on consumer
What is Subjective Value?
Exchange
What is a social agreement to trade something for something else?
Value>Price>Cost
What is the correct order of the profit chain for consumers and producers?
Money
What is the universal (commonly used) medium of exchange?
How can I make something that consumers will buy?
What question do Entrepreneurs ask themselves?
Invisible Hand
Which Adam Smith theory posits that an individual's pursuit of self-interest unintentionally benefits society?
Opening of a new educational institution.
Which of the following is NOT one of Joseph Schumpeter's "new combinations" in entrepreneurial activities?
More jobs created
Which of these is NOT one of the three reasons discussed in class for why it is more efficient to work under the division of labor?
Creative Destruction
Which term refers to the process where old industries are displaced by new innovations?
Adam Smith
Who is the father of Economics?
Network of interconnected and interdependent productive actions and processes that build off and support each other.
An economic organism is what?